Gold markets have rallied a bit during the course of the trading session on Friday in response to the horrible miss by the labor figures in the United States. All things been equal, this is a market that should continue to go higher but we may get a short-term pullback in the short term in order to get long again. If we can break above the $1850 level, then it is likely we go looking towards the $1950 level. Nonetheless, I think there is plenty of support underneath and I do believe that it is only a matter of time before buyers would come in to pick up value. The 200 day EMA is sitting just below the $1800 level so that is something worth paying attention to.
Gold Price Predictions Video 10.05.21
If we were to break down below the 200 day EMA, that would be a very negative turn of events, and probably send this market into a bit of a tailspin. This would be on the back of a stronger than current US dollar, something that I do not necessarily see as the Federal Reserve is so far behind some of the other central banks and the world as far as tapering is concerned. Furthermore, we are in a big move to the upside and recently had formed a massive double bottom. After this week, I think it is obvious that gold is changing its overall attitude, and that is something worth paying attention to. All things been equal, I think that pullbacks offer value and therefore that is the play that I think we are going to have to stick to.
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This article was originally posted on FX Empire